Should you sell your Rogers Communications stock?

Desjardins Securities analyst Jerome Dubreuil downgraded Rogers Communications to “Hold” from “Buy” on Dec. 10, maintaining his $57.00 price target.

He said it has been “refreshing to see a few months of relative pricing discipline in the Canadian telecom space after many quarters of aggressive promotions,” but argued that Rogers’ valuation already reflects most of the upside from its sports assets.

Dubreuil estimates that 50%–90% of the value of Rogers’ sports holdings, primarily its interest in Maple Leaf Sports & Entertainment (MLSE), is embedded in the current share price, “above the typical 50% discount to PMV for publicly traded sports assets.”

With Rogers expected to acquire Kilmer Group’s 25% MLSE stake, he sees “near-term balance sheet pressure” and views a net divestiture of MLSE shares in 2026 as “uncertain.”

Toronto-based Rogers continues to highlight strong operating trends. In its Oct. 23 results, the company reported 111,000 mobile phone net additions and churn of 0.99%, its lowest level in more than two years. Wireless service revenue rose to $2.1-billion and Adjusted EBITDA reached $1.4-billion, reflecting what management called “continued marketplace discipline.” Cable EBITDA climbed 2% to $1.1-billion, with 29,000 retail Internet net additions.

Media revenue increased 26% to $753-million, supported by a strong Toronto Blue Jays season and the consolidation of MLSE results. Rogers said pro forma 2025 Media revenue and adjusted EBITDA including MLSE would be roughly $4-billion and $250-million, respectively.

The company also emphasized its network strategy, noting it is the first carrier in Canada to launch satellite-to-mobile text messaging, expanding Rogers Satellite to cover three times more of the country than rivals and enabling connectivity for first responders in remote regions.

Rogers reduced its debt leverage ratio to 3.9× after purchasing an additional 37.5% stake in MLSE in Q3. It reaffirmed its 2025 guidance for service revenue growth of 3–5% and adjusted EBITDA growth of 0–3%, alongside capital expenditures of $3.7-billion and free cash flow of $3.2–3.3-billion.

Despite the operational momentum, Dubreuil said the stock already prices in much of the perceived upside tied to sports and media. “With the expected acquisition of Kilmer Group’s 25% MLSE stake, we anticipate near-term balance sheet pressure,” he said, adding that the valuation framework now supports a “Hold” recommendation.